While a number of digital currencies have seen price gains the two leading crypto assets, bitcoin and ethereum have seen transaction fees skyrocket. For instance, data shows that the median fee for a bitcoin transaction is $8.58, while the median fee is $9.35 when spending ether. Meanwhile, the average transaction fee for both networks has been much higher between $14 to over $20 per transfer.
During the course of 2021, crypto assets have increased a great deal in value but alongside this, the fees to transact on these networks have risen as well. Bitcoin (BTC) and Ethereum (ETH) are the two largest blockchains, in terms of market capitalization. The two networks also take the cake when it comes to expensive transactions and this has been a complaint on social media and crypto-focused forums.
At the time of writing, according to bitinfocharts.com data, the average transaction fee for bitcoin (BTC) is 0.00038 BTC or $14.25 USD per transfer. Of course, the median sized transaction is lower on the BTC network, but still $8.58 per transaction according to today’s messari.io data. Stats show that the average transaction fee on the ETH network today is 0.013 ETH or $20.68 USD at the time of writing. Messari stats show the median fees for ETH is also higher than BTC, but lower than the average ETH transaction, at $9.35 per transfer.
Of course, people have been complaining about the fees and the backlog of transactions. “Always remember people,” one person tweeted. “The sky high transaction fees of ethereum [and] bitcoin are there so someone wants to make profit, not because they’re necessary.” Financial reporter, Kyle Torpey tweeted about the fact that it cost more to send wrapped bitcoin (WBTC) using Ethereum, than it does to transfer bitcoin onchain.
Other digital currency fans, specifically ETH supporters believe the high fees problem will be fixed. “On the surface, it looks far overstretched, but 2.0 is going to massively increase ETH’s speed, scalability, and value,” an individual claimed on Twitter. “Those outrageous fees will become a thing of the past.”
Bitcoin cash proponents also discussed the massive fees on both the Ethereum and Bitcoin networks during the course of the past week. The cost to get a transfer into the next block using the BCH network costs $0.0021 according to bitcoinfees.cash statistics. The current median fee on the Bitcoin Cash (BCH) blockchain on February 4, 2021, is $0.0009. Bitcoin.com founder Roger Ver recently appeared with the nomadcapitalist.com founder, Andrew Henderson, and discussed the problem with BTC transaction fees.
“Just try to make a bitcoin transaction and then try to make a bitcoin cash transaction,” Ver explained in the video. “The difference is staggering and may be the only evidence you need to know where you stand in the Bitcoin vs. Bitcoin Cash debate,” the entrepreneur added.
The high fees have also seemingly pushed stablecoins who leverage these networks to alternative blockchains. For instance, when onchain fees became too burdensome, the most popular stablecoin tether (USDT) started migrating from BTC (Omni Layer) to the Ethereum chain. Since the ETH network fees have spiked in recent months, recently USDT settlements have seen more action on the Tron blockchain. Additionally, the second most popular stablecoin USDC is migrating to the Stellar network and fees may have spurred this decision as well.
Credit: Bitcoin News